Journalists summoned to CID over Sh3.8 billion security deal exposé

Interior Principal secretary Monicah Juma (left) Cabinet Secretary for Interior and Co-ordination of National Government, Joseph Nkaissery addressing the press at Harambee house. PHOTO: BEVERLYNE MUSILI/STANDARD

NAIROBI: Interior Cabinet Secretary Joseph Nkaissery has directed police to interrogate journalists of three daily newspapers, which exposed a fresh parliamentary investigation into Sh3.8 billion controversial payments for security-related contracts that Auditor General Edward Ouko has questioned.

A day after Mr Nkaissery was questioned by the National Assembly’s Public Accounts Committee (PAC) over the contentious payments, including some Sh2 billion that was paid on June 30, 2015, the last day of the last financial year, an officer from the Directorate of Criminal Investigations summoned the journalists.

The detective, who identified himself as John Kariuki, said he had “orders to talk to the journalists” over the story.

“I would like to talk to you about this story you have written on the Sh3.8 billion payments for security items. I am told that information was not tabled in the committee, and therefore I would like you to come to CID headquarters at 2.30pm,” the detective told The Standard writer.

Journalists from the Daily Nation and The Star also received phone calls early Thursday ordering them to appear at the Directorate of Criminal Investigations.

The controversial payments are detailed in an August 26, 2015, letter that the Auditor General Edward Ouko wrote to the Principal Secretary of Interior Monica Juma seeking evidence that the payments were actually made for actual goods and services rendered. The letter is titled ‘Procurement of Security Items’.

The letter was read in an open sitting of the PAC by the interim chair Junet Mohammed (Suna East) in the presence of Nkaissery, his two principal secretaries Monica Juma (Interior) and Josephta Mukobe (National Government Co-ordination) and the Director of Immigration Gordon Kihalangwa. Mr Mohammed was sitting in for the substantive chairperson Nicholas Gumbo (Rarieda).

Thursday, Nkaissery called a press conference to criticise local media for allegedly publishing highly sensitive information that he said is critical to State security.

A visibly angry Nkaiserry, who spoke outside his Harambee Office in Nairobi, singled out three major dailies for printing ‘wrong information’, which according to him was malicious and meant to create a false impression that there is corruption at his ministry.

“The three dailies have today printed distorted information, which I can only imagine is calculated to create a perception that there are malpractices relating to procuring security systems within the Ministry of interior and Co-ordination of National Government,” said the CS.

Nkaissery wondered how journalists got the information, noting that he was probed in camera.

“We presented the information to PAC in camera, as required by the law in order to safeguard unwanted elements that could harm the country. The fact that they are carrying these stories begs the question of how the media, who did not participate in the discussion, accessed this confidential information,” said the CS, who said he will seek legal redress over the breach of the law.

The auditor looked at the schedule of payments where all but two payments were made on June 30, 2015 when the last financial year closed, and realised that there were major gaps.

It is the reporting of this information including the breakdown of the payments into accounts at the Kenya Commercial Bank and the National Bank of Kenya, to be held for suppliers, that has infuriated Nkaissery.

The auditor also sought to investigate the accounts at Kenya Commercial Bank where the payments were made.

“Initial observations have revealed that these vouchers were not adequately supported as required under sections 5.5.13 and 5.5.14 of the Government Financial Regulations and Procedures. The audit is incomplete due to lack of tender documents and other records that we requested in (an earlier) letter.

“In addition, we would wish to review bank statements for Kenya Commercial Bank Account No. 1109896077 for the period starting July 2014 to August 2015,” reads the letter.

Included in the payments is Sh370 million that was paid to Lom Praha Trade through the National Bank of Kenya. Lom Praha is the Czech company that got the tender to overhaul helicopters, a tender which is under investigation by the Ethics and Anti-Corruption Commission over alleged irregular procurement.

Another payment of Sh1.6 billion to Pioneer Insurance was made on September 19, 2014, while Sh245 million was paid on March 3, this year, to Steyr Mannlincher (Deftech Limited) for unspecified security items.

The money, the Interior bosses claimed, was paid to Chinese, Israeli and even local car subsidiaries, with DT Dobie getting Sh59 million while Toyota Kenya got Sh56 million.

Most of these payments were made to a KCB account on the the last day of the 2014-15 financial year.

The Principal Media Relations Officer in Parliament Martin Mutua asked parliamentary journalists to ignore the summons, because not even the House Committee had complained.

“Please be advised that parliamentary reporting both in committee and at the plenary are privileged and reporters enjoy full and unfettered privileges and immunity,” said Mr Mutua.